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Fundamentals of Ethics, Corporate Governance and Business Law

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Total Questions : 661

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Our free CIMA Certificate practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about BA4. Use this test to pinpoint which areas you need to focus your study on.

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Question # 71

Which of the following requires the approval of 75% of all the company's shareholders who are entitled to vote?

Options:

A.  

A written special resolution

B.  

A special resolution

C.  

A written ordinary resolution

D.  

An ordinary resolution

Discussion 0
Question # 72

Which of the following is NOT normally a stakeholder of an organization?

Options:

A.  

Customer

B.  

CIMA

C.  

Government

D.  

Media

Discussion 0
Question # 73

Which of the following is INCORRECT in relation to directors' duties?

Options:

A.  

Directors owe a duty to promote the success of the company.

B.  

Directors' duties are codified in the UK Corporate Governance Code.

C.  

Directors must act in accordance with the company's constitution.

D.  

Directors' duties are owed to the shareholders as a whole.

Discussion 0
Question # 74

How does CIMA support its members in their continual personal improvement?

Options:

A.  

Through the CIMA Professional Development Framework

B.  

Through the CIMA Code of Ethics

C.  

Through the IFAC Code of Ethics

D.  

Through the CIMA Public Duty Framework

Discussion 0
Question # 75

Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

Options:

A.  

The separation of the roles of Chairman and Chief Executive

B.  

The appointment of independent non-executive directors to the Board

C.  

The establishment of a Risk Committee

D.  

The appointment of a competent Company Secretary

Discussion 0
Question # 76

Anne was induced to enter into a contract with Benny by his negligent misrepresentation. Which of the following is correct?

(i) Anne has a remedy against Benny in the tort of negligence.

(ii) Anne has a remedy against Benny under the Misrepresentation Act 1967.

(iii) Anne has a remedy in the tort of deceit. 

Options:

A.  

(i) only

B.  

(i) and (ii) only

C.  

(ii) and (iii) only

D.  

(i), (ii) and (iii)

Discussion 0
Question # 77

In the UK, the body responsible for reviewing the regulatory activities of the professional accountancy bodies is:

Options:

A.  

The Professional Oversight Board for Accountancy

B.  

The International Federation of Accountants

C.  

The Financial Reporting Council

D.  

The Financial Review Board

Discussion 0
Question # 78

Which of the following resolutions of a private company limited by shares CANNOT be effected by using the written resolution procedure?

(i) An ordinary resolution to dismiss a director.

(ii) A special resolution to misapply statutory pre-emption rights in relation to a new issue of shares.

(iii) An alteration of the articles of association.

Options:

A.  

(i) only

B.  

(i) and (ii) only

C.  

(ii) only

D.  

(iii) only

Discussion 0
Question # 79

The code of ethics of the professional body to which M belongs is very clear about the importance of non-discrimination on the grounds of race, gender, sexual orientation and religion. But, because of her particular religious convictions, M believes that homosexuality is wrong. This is an example of a tension between:

Options:

A.  

Corporate and professional values

B.  

Personal and professional values

C.  

Societal and professional values

D.  

Personal and corporate values

Discussion 0
Question # 80

Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

Options:

A.  

Integrity

B.  

Respect

C.  

Objectivity

D.  

Confidentiality

Discussion 0
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